Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
' \% O( f' Z( t( u" uthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
7 F' M+ l9 B, D' x& V9 a" g7 ?EXXON, BG, BP, Cheveron ....xyz.. oils
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; ~, n, _; y: N, BRecently OPEC reduced crude oil production twice over just a few
# }5 p1 r4 X" hmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
) O; J- f* j+ R* e1 W% s- c  qleast $50.00 per barrel. Today, oil price declined by a record amount.


- U  N1 z9 O( \6 Y, r3 s3 t3 }1 sThere are several reasons the price of oil is decreasing in the face
2 }5 o$ u" h/ r9 V; [/ E  a" ]5 Yof so much news. These reasons are:

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1. New oil has been found in Canada, Montana, North & South Dakota and
% |, a: L5 n' Q- v# g- a6 Z4 D# |* xin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
" q: f9 G0 T+ |& w5 X8 gThis is the largest find in North America.
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+ y& o/ u; |$ ?5 x' ^3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
- a# N8 ~! _4 z9 p! k) Ofuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
0 j$ f8 l$ S, ]1 ~1 Gracing to produce bio fuels.
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- N) B  ^; B% t, u7 W0 K) ?5. Virtually every restaurant in the US and all food processing plants
- k- `8 J2 @5 d5 {are now selling their used oil to bio-diesel producers. Every pork,
% R( u  O+ d% k- z) Scattle, turkey and chicken processing plant will soon sell their fat
9 x$ C  ^( ^" d1 B5 J" Y7 ^- oto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
3 e: E3 Z: q  Z- ^: Xconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
9 D4 y3 Y3 @' j! V. f6 K4 nwill replace oil.

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5 I. O$ H. M! d! }0 x7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
/ E3 d0 H& t6 o, a7 M- Vare experiencing 20% to 25% better fuel econony with the new
: M: B; f3 h# D# I& Iequipment.
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; h" I) J8 p7 T3 F6 W# [1 R5 uAirlines are flying airplanes with bio-fuel. They are finding the bio-
' V1 n. G' C: Y' |+ q1 Yfuel is cleaner and performs better than jet fuel.
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9 i( u, @) |! L9 j7 z" p8. Cities and counties throughout the US are selling the rights to
9 E3 E' L$ x% I' Q) a9 Ycapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
- B# Z3 ]# Q5 E* Y& roil.
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% ?2 q" n& t# s6 c* l1 @  t9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
. J5 \  m) z. g# f* G" G5 Joil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
4 {' ~6 F- y/ T6 P: V/ N7 Q/ Wprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
9 z7 L* g+ ~5 Z0 ~to control oil prices.
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4 c0 n4 ]: H; P. i; n9 O& F/ x* dWith the above scenario, I still believe that there are under
4 A5 q  j  p( }performed OIL companies and probably they are yet to get the justified
( a1 D  c; r1 b+ jvalue .....
% Y# v& z% |, ]$ c1 ^# uIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


: Y, m3 v! R6 G+ G4 x) p. xThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
( v" B# \) ~* H0 o2009 ... FYI-Only